Soybeans Lower This Morning in a Light Setback

(AgWeb) –  In the Sunday night session the grains traded lower with December corn down ¼ cent, January soybeans down 2 ½ cents and Chicago Wheat down 4 cents.

The sharp rally on Friday brought corn prices back from the lows of the week, but will likely lead to upward resistance around $3.42 ½ early in the trade this week.

Resistance at this level is from a level of previous support which was broken, often causing a role reversal where previous support turns into price resistance.

Last week the cash market firmed as basis moves out of harvest lows. Corn improved 2 cents and soybeans rallied 4 cents on average across the country. Soybean basis was driven by a sharp rise in the export markets.

The PNW increased their soybean basis by 22 cents and the Gulf lifted theirs by 14 cents on average this week. Basis along the river system reacted to the strength out of the Gulf by improving 8 cents on average this week. Soybean plants increased an average of 3 cents this week.

Corn basis also improved this week, but only by an average of 4 cents along the river and 4 cents at Ethanol facilities.

The latest commitment of traders report showed that money managers extended their net short positions to 230,556 contracts from 205,625 short last week.

This is a record net short position that surpases the previous record of 229,176 net short positions on March 8, 2016. The managed money net position in soybeans fell 24,187 contracts last week to a net positive 22,550 contracts.